Question
The Boys and Girls Clubs received a contribution of $35,000 in October 2023. The donor stipulated that the funds were to be used to repair
The Boys and Girls Clubs received a contribution of $35,000 in October 2023. The donor stipulated that the funds were to be used to repair and reseal the Clubs' swimming pool. The fiscal year ended on December 31, and the swimming pool repairs are planned for early 2024. How should the Clubs record the $35,000 contribution in its 2023 financial statements?
Group of answer choices
a.
| |||||||||||
b.
| RESTRICTED FUND | Debit | Credit |
| Cash | 35,000 | |
| Revenue from contribution | 35,000 |
c.
| ENDOWMENT FUND | Debit | Credit |
| Cash | 35,000 | |
| Revenue from contribution | 35,000 |
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Audit Committee Essentials
Authors: Curtis C. Verschoor
1st Edition
0471699594, 978-0471699590
